WOW!! Ok, great info here guys!! Much appreciated! It's going to take me a while to digest all of it, so please bear with me while I get this thing hammered out and keep asking stupid questions...
Now to answer some of the questions asked above: yes, it only surges once it goes into closed loop. Before that, it idles like a dream. And, if you stab the throttle or hold it at a steady elevated RPM for a bit, it won't surge immedately once it idles down, but rather after about 10-15 seconds of idling. Outside of the idle issue, it runs wonderfully!! No hesitation or bogging, MUCH more pulling power than my 470cfm Truck Avenger gave me (obvious due to the increased cfm capacity...), and from the first 50 miles or so of test driving, it appears to be quite a bit more efficient according to the fuel gauge.
So on to the fix... First off, how do I adjust the IAC? I have been through a TPS adjustment on an XJ before, it was simply a slight rotation of the actual TPS to get within a voltage range at idle and WOT... But the IAC appears to simply thread into place?